How To Select The Right Stocks At The Right Time(2)

Earnings: The Indispensable Element Of Great Stocks (2)

Yahoo surged 458% in seven months starting September 1998.

Right before this phenomenal move, Yahoo reported three quarters of earnings growth of 400%, 500% and 800% -

clear indications that this stock was building a strong track record and poised for further growth.


Mindspring surged 237% in five months starting November 1998.

In the three quarters prior to this, it reported earnings growth of 140%, 233% and 800%, respectively.


Brooktrout Technology Inc., a maker of software and hardware for networks and telecommunications systems, catapulted 230% over 23 weeks starting in December 1995.

The three quarters before this great move saw earnings growth of 31%, 47% and 100%.